Riot Games looking to sever ties with FTX following their bankruptcy

Riot Games isn't directly filing a lawsuit against the cryptocurrency exchange firm but instead a motion in relation to the FTX bankruptcy case. In the motion, Riot Games expresses their concern about the balance left unpaid by FTX as the sponsor of LCS. And understandably, Riot also mentions that they do not find it realistic to expect FTX to be able to cover the rest of the payment.

While Riot Games isn't confident about the future performance of FTX, they are simply looking to sever ties with the firm. Even if FTX doesn't accept Riot Games' motion to cut ties and fight back, Riot Games is looking for an alternative: a relief from 'Automatic Stay.'

'Automatic Stay' is a legal term that means that the creditor cannot take any action against the debtor, despite not being able to pay what is owed to the creditor. If the FTX cryptocurrency exchange firm cannot pay what they owe Riot Games, the court may be able to cut their ties without any further action.

Riot Games has also expressed that the FTX bankruptcy filing and the recent arrest of the founder Sam Bankman-Fried have stirred up a lot of controversies. This has resulted in Riot Games receiving a major public backlash and a bad reputation.

Both parties can do their best to devise solutions that may serve them positively. However, now only the court can decide what conclusive result ensues as part of this legal battle.